News
5 things you should know before the stock market opens on Wednesday, May 29
- The Nasdaq Composite surpassed 17,000 for the first time.
- T-Mobile is planning to acquire most of US Cellular.
- American Airlines lowered its outlook for the second quarter.
Here is the most important news investors need to start their trading day:
O Nasdaq Composite closed up 0.59% in Tuesday’s trading session, surpassing the 17,000 threshold for the first time. The rise in the index was driven by a jump of more than 6% in the Nvidia, which also hit a new record high on Tuesday. O S&P 500 Likewise, it closed higher, just 0.02%. In contrast, the Dow Jones Industrial Average fell 0.55% and was bogged down by the fall Merck and other health names. follow live market updates.
The T-Mobile logo is seen in Miami, United States on May 2, 2024.
Jakub Porzycki | Nurfoto | Getty Images
US Cellular is reconnecting. mobile tee announced on Tuesday that it is planning to acquire most of US Cellular – including the wireless carrier’s stores, some of its spectrum assets and its customers – in a deal valued at about $4.4 billion. T-Mobile is expected to acquire about 30% of US Cellular’s wireless spectrum, with US Cellular planning to lease space to T-Mobile on at least 2,100 additional towers. The deal also includes up to $2 billion in debt. The announcement comes after T-Mobile acquired Ka’ena – the parent company of Mint Mobile – for $1.35 billion. In 2020, T-Mobile completed a $26 billion merger with Sprint.
Ryan Salame, former co-chief executive of FTX Digital Markets, walks out of Federal Court after pleading guilty to two charges, including conspiracy to make illegal political contributions in the US, in New York City on September 7, 2023 .
Brendan McDermid | Reuters
Another FTX member goes to prison. Ryan Salame – a former lieutenant of the FTX Founder Sam Bankman-Fried — was sentenced to 90 months, or seven and a half years, to be followed by three years of supervised release. This is a heavier sentence than the five to seven years suggested by prosecutors and the 18 months requested by the defense. Salame must also pay more than $6 million in forfeiture and more than $5 million in restitution. He pleaded guilty last year, defrauding the Federal Election Commission, conspiring to make illegal political contributions and conspiring to operate an unlicensed money transmitting business.
An American Airlines Boeing 737 passenger aircraft arrives from Austin, Texas, to JFK International Airport in New York as the Manhattan skyline looms in the background on February 7, 2024.
Charly Triballeau | Afp | Getty Images
American Airlines lowered its outlook for the second quarter. The airline said this expects unit revenues to fall up 6% compared to the same period of the previous year. It also lowered the adjusted earnings estimate for the period to a projected range of $1 to $1.15 per share – down from the previous range of $1.15 to $1.45 per share. This cut occurs because the airline is already behind its competitors Delta It is United airlines in recent months in terms of financial performance. The company is also firing its commercial director. Vasu Raja, who spent more than two years in the role, was recently on leave, and an airline spokeswoman had previously said he would not be leaving the company. But a person familiar with the matter said everything has changed in recent days and Raja is now expected to step down next month.
Traders walk during morning trading at the New York Stock Exchange (NYSE) on May 14, 2024 in New York City.
Spencer Platt | Getty Images
Things are still getting better GameStop. Shares of the video game retailer soared during Tuesday’s trading session after the company announced made nearly $1 billion by selling 45 million shares of common stock. Meme stock closed up more than 25% and is up more than 100% month-to-date. While the company did not disclose the price at which the shares were sold, they said the transaction was an “at market” offering. The selloff comes after “Roaring Kitty” — the person behind the 2021 stock short squeeze — posted online earlier this month for the first time in about three years, sending shares dramatically louder.
— CNBC’s Alex Harring, Pia Singh, Sophie Kiderlin, Todd Haselton, Sean Conlon, MacKenzie Sigalos and Leslie Josephs contributed to this report.
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